Aorere Kotuku oil interests part of Mosman London listing

Aorere Resources will hold an
11.4% shareholding in a London AIM-listed company, Mosman
Oil and Gas, if Mosman is able to raise £2.5 million in
capital.

The capital raising is currently underway and
listing will occur once it is raised.

This follows the
sale of the West Coast Kotuku oil seeps petroleum
exploration permit to Mosman Oil and Gas Ltd late last year.
The deal gives Aorere the shareholding and a royalty for 2%
of net sales revenue from the permit in the event of
successful development.

Aorere chairman Dene Biddlecombe
said the board was excited by the potential for the permit
and investment in Mosman, which also holds 25% of a West
Australian onshore oil and gas permit application.The
Mosman AIM listing is well advanced and its listing is
expected in the second half of February.

Mr Biddlecombe
said a competent person’s report by Moyes and Co
commissioned for the listing had two interesting
findings:

• The permit has hydrocarbon potential in
deeper structural and stratigraphic plays to the west and
north of the Kotuku seeps where the hydrocarbon kitchens are
mapped.

• The permit has the necessary ingredients to
suggest accumulations of oil could be present, particularly
at deeper levels. The project area is dominated by the
Kotuku anticline and 22 leads and prospects have been mapped
over the feature. The shallow nature of many of the
structures mapped is favourable for cost effective
drilling.

Page 28 of the report also sets out the
“prospective resources” at the permit. These suggest in
terms of unrisked recoverable oil within four reservoirs at
the permit there is a:• 90% probability of 4.8 MSTB
(million stock tank barrels)• 50% probability of 15.6
MSTB.• 10% probability of 59.2 MSTB.

These are
estimates only and should be considered in the full context
of the competent person’s report. In particular the above
must be considered in the context of the definition of
“prospective resources” in the report which
says:

"Prospective resources are estimated volumes
associated with undiscovered accumulations. These represent
quantities of petroleum which are estimated, as of a given
date, to be potentially recoverable from oil and gas
deposits identified on the basis of indirect evidence but
which have not yet been drilled. This class represents a
higher risk than contingent resources since the risk of
discovery is also added. For prospective resources to become
classified as contingent resources, hydrocarbons must be
discovered, the accumulations must be further evaluated and
an estimate of quantities that would be recoverable under
appropriate development projects prepared."

Perth-based
Mosman plans to drill two onshore wells in the coming months
at the Kotuku prospect on the West Coast.

“This will be
a significant investment by the permit holders in the West
Coast economy,” according to Mr Biddlecombe. “We remain
hopeful of a modest oil strike which may be the start of a
new oil and gas industry on the West Coast. As well as being
great news for our shareholders, it would provide a
fantastic boost to the local economy.”

Mosman, backed by
European, Australian and Asian investors, brings extensive
international experience in the oil and gas exploration
sector.

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